The new financial year often brings with it vital changes. This year in particular, (2020/2021) brings with it new minimum wages, national unfair dismissal regulations and tax thresholds/rates, as will be explored in this article.
The annual wage review of the Fair Work Commission (FWC) has seen a new minimum wage effected from July 1, 2020. For adults working full-time, the new wage is $753.80 per week, ($19.84) per hour. an increase of $13. All modern award rates of pay have also increased by 1.75 percent, applying in three respective stages. Casual rates remain at 25 percent of the full-time employment rate.
The FWC has also announced changes to the high-income threshold in national unfair dismissal jurisdiction. The high-income threshold for the purposes of the Fair Work Act has increased from $148,00 to $153,600, with maximum compensation for a claim being $76,800.
The new Fair Work Information Statement was also released on 1 July and is required to be given to all new employees.
Civil penalties applicable for breaches of the Fair Work Act have also increased. For corporate contraventions they are now $66,600 and for individual contraventions: $13,320.
In relation to taxation changes, there is a new Employment Termination Payment (ETP) cap. The amount up to the ETP cap is taxed at a concessional rate and the amount more than the cap is taxed at the highest marginal rate.
For genuine redundancy payments, there is now an increase in the tax-free amount. The new base limit is $10,989 and the amount for each completed year of service is $5,496.
For superannuation, the guarantee charge percentage remains at 9.5 percent, however, the maximum contribution base is now $57,090 per quarter.
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